Share:

Minor International ("MINT") reported 3Q15 net profit of Baht 923 million, a 24% year-on-year increase. Excluding a one-time gain of Baht 70 million relating to MINT's purchase of Oaks Elan Darwin, 3Q15 core net profit grew by 14% year-on-year due to the strong performance of MINT's hospitality and restaurant businesses, notwithstanding generally weak global economic conditions. MINT reported 9M15 net profit of Baht 3,621 million, a 30% year-on-year increase. The net profit included non-recurring gains of Baht 720 million relating to MINT's acquisitions of Sun International hotels in 1Q15 and Oaks Elan Darwin in 3Q15. Excluding such gains, MINT's core net profit for 9M15 grew by 7% year-on-year. This growth was achieved not only in the face of weak economic conditions, but also currency challenges, political uncertainty in some of MINT's key markets and other headwinds including the Bangkok bombing.

MINT's hospitality business reported year-on-year net profit growth of 45% in 3Q15 and 52% in 9M15. Excluding the gains relating to the acquisitions, 3Q15 core net profit rose by 27%, while 9M15 core net profit increased by 13% year-on-year. This growth was principally due to the strong performance of MINT's owned and managed hotel portfolio, Oaks Hotels & Resorts in Australia and Anantara Vacation Club, MINT's point-based timeshare business. MINT's hotel business performed well despite weak global economic conditions, political and currency challenges, and other external factors, reflecting the strength and resiliency of its underlying hospitality business. The revenue per available room (RevPar) of MINT's owned hotels in Bangkok grew by 39% in 3Q15, as these hotels rebounded strongly from the Thai political challenges of 2014. The RevPar of MINT's organic owned hotels in upcountry Thailand and overseas increased by more than 20%, principally due to upcountry hotels across Thailand and hotels in the Maldives and Vietnam. In 3Q15, hotel management fees increased by 12% year-on-year, primarily driven by growth from MINT's managed hotels in China and the Middle East. Anantara Vacation Club's net profit increased by more than 80% in 9M15 due to increased sales, together with higher profitability as the vacation club business grows in size and capitalizes on greater economies of scale.

MINT's restaurant business recorded a year-on-year net profit increase of 10% in 3Q15 and 2% in 9M15. Total-system-sales grew by 13% in 3Q15, primarily as a result of 8% year-on-year outlet expansion, while same-store-sales was flat in 3Q15 compared to last year. Although domestic consumption in Thailand remained weak in 3Q15, MINT's Thailand hub, which is its largest hub, reported same-store-sales growth of 2.5% in 3Q15, led by the performance of Burger King, Sizzler and The Pizza Company. In Singapore, same-store-sales began to see an improving trend in 3Q15 as some of the Thai Express outlets have completed their renovations and are again fully operational. MINT's restaurant business showed strong performance in the context of a weak retail environment in its key markets, reflecting the resiliency and strength of MINT's restaurant business.

MINT's retail trading business, which operates only in Thailand, reported a year-on-year net profit decrease in 3Q15, as discretionary spending remains soft in the current weak economic environment. The Bangkok bombing incident also had an adverse, though temporary, impact on high-traffic stores of MINT's fashion business around the affected area.

MINT continues to execute its strategic objectives in a disciplined manner, with a focus on increasing yields from assets which it has built and acquired over the years, some recent examples being MINT's hotels in Africa and the recently-acquired Tivoli portfolio. Importantly, MINT also continues to strengthen its relationships with its business partners. For instance, MINT's recent increase in shareholding in its restaurant operations in Australia (which it operates in partnership with the business' founders) will not only increase MINT's earnings contribution from its Australia hub, but also drive growth of the business, as it can now further leverage on MINT's operating platform and international capabilities. With its disciplined approach to growth and its diversified business portfolio, MINT is a resilient company and expects to show continued strong growth going forward.

About Minor International:

Minor International (MINT) is a global company focused on three primary businesses including restaurants, hotels and lifestyle brands distribution. MINT is one of Asia's largest restaurant companies with over 1,700 outlets operating system-wide in 20 countries under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, Thai Express, The Coffee Club, Ribs and Rumps, BreadTalk (Thailand) and Riverside brands. MINT is also a hotel owner, operator and investor with a portfolio of 135 hotels and serviced suites under the Anantara, AVANI, Oaks, PER AQUUM, Tivoli, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International brands in 22 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe and South America. MINT is one of Thailand's largest distributors of lifestyle brands focusing primarily on fashion, cosmetics and contract manufacturing. Its brands include Gap, Banana Republic, Esprit, Bossini, Charles & Keith, Pedro, Red Earth, Zwilling J.A. Henckels, ETL Learning and MySale. For more information, please visit www.minorinternational.com.